Many Australians are currently not aware that they have money deposited in a standard savings account that isn’t earning them any real interest at all and the bank is taking advantage of that very thing. There are so many other opportunities where you could invest your money in something with higher interest but people are quite reluctant to move their money around and from bank to bank. If you were to take a moment to check out the history of your current savings account, you will probably see that you have left the money in there for a considerable amount of time and you never felt the need to touch it at all.
During that time, you could have earned a lot more interest if you had just taken the time to open a great value term deposit savings account. This particular account allows you to invest a certain amount of money over a certain period of time for a fixed interest rate. This kind of account can be incredibly useful if you’re saving up for a specific thing because you can work out the amount of interest that is coming to you in three, four or five years. If you’ve never really considered such an account before then the following are just some of the financial benefits of doing so.
- Much higher interest rates – Many savings accounts in Australia are offering less than 1% interest rates and so your money is earning absolutely nothing sitting there in the bank. The beauty of term deposit savings accounts is that they offer a much higher rate of interest and so the more money that you put in, the more money that you can make. There are actually different interest rates depending on the amount of money that you would like to depositand over what period.
- Your savings are protected – We all need peace of mind when we put money into the bank and although we do trust the Australian banking system, there is a lot going on in the world right now and a financial collapse may come at any time. Australia has a financial claim scheme put into place that protects your deposits of up to $250,000 in the very unlikely event that your bank or any lending institution has to shut down.
- There are no fees involved – It is generally accepted that a term deposit account is no fee income but you do have to give them notice if you want to withdraw the money before the term is agreed. There may also be some kind of financial penaltyas well and so make sure that you check the terms and conditions before you hand over your hard-earned cash.
There is also the possibility that your interest will be paid at monthly intervals and so this money can be deposited into a linked account and this is money that you can spend. This is fantastic news for those who are not expecting a cash windfall and then it just comes along.